tv Cavuto on Business FOX Business May 4, 2014 1:30am-2:01am EDT
>> john, bull or bear on that? >> i need a drink to understand you. bear. >> tracy, quickly? >> weird, weird trend. parents going on interviews with their kids. stit. cut the cord. for get about being number one. it's our number up. don't look now, but america's days as the top economic super power are numbered. china now set to grab the top spot as early as this year, while our economy is all but stalling and now we are left asking if this is the reason why. our guests, gary k? >> it's hard to stay number one when you run up $17 trillion in debt and it's still growing and nobody doing anything about it. to be fair, china, i don't think some of the numbers coming from
them, but our government spending $2 trillion a year than 15 years ago, that is coming out of the economy and providing head winds. >> i mean, government spending is way ahead of inflation, and all the ideas are solved, but we hear from the people in charge, more debt and more spending. >> i read the reports about china is going to be number one. based on what, purchasing power parody? that keeps me up at night. >> we're doing something wrong, though? >> when you are championing china, you are putting down the united states and our ingenuity. china will never be richer than us on per capita gdp -- >> never? >> no, because it's just a vast nation. the jobs report, we are still growing jobs. the job growth is picking up. >> under employment is still huge. >> i just don't want to put down
the ingenuity and success of the companies doing. >> giving america a wake-up call. >> the measurement doesn't drill me either. but when you add up the various measurements it doesn't look good for us. we are falling behind in a lot of categories. i would not dismiss china's growth. china have not had a recession in a long time. but here is the paradox of a chinese recession. if they go into recession, who is going to buy our debt? that's when we may end up and their gdp is larger than ours. >> i want to focus on america, and china is a different debate, but america's share of global gdp peeked in the '50s, and now it's becoming a boulder and we are going downhill faster. >> well, with all due respect, i echo what our friends said, purchasing power parody is not a
well-recognized or well respected way of calculating gdp. it just doesn't work. on the other hand, there is no ready way to correlate the size of a debt with the gdp of a country. our gdp grew the fastest in world war ii when we added debt ahead of what we are adding now. >> ben, are you not worried about the -- are we whistling past the graveyard? >> i don't care, we will be on a per capita gdb basis, we are so far ahead of china it's insane, and we could lead great lives, and this is a meaningless report with all due respect. >> charlie, let me bring in adam. i am hearing a lot of ifs from ben, but a large swath of people watching the show right now don't feel like america is
number one and they have not had a job, and the list goes on and on and on and on, and home ownership at a 19-year low. there is no way in the world we could be so excited. the world is nipping at our heels, and more importantly we are letting them nip at our heels. >> charles, i will go with with it. i agree with what everybody has said, but i will take up your challenge and say to you, i agree, and everything that you say is accurate, but the crux of the matter is should we expect anything less? we need to adjust our expectations a little bit. you are right that we were the only economy in the entire world that mattered in the 1950s. there was no reason to assume that would continue. there is every reason to assume the chinese will be a massive economy for a very long time to come, and they should be. shame on them if they are not. can we work on some of the issues that you address? yes, we can. and we will. >> i agree with --
>> suppose the chinese economic bubble does burst, and what does that mean for us? that means we lose the buyer of last resort for our debt. that's when we really have something to -- >> well, the earning season, guys, there are huge buyers for a lot of the products. but gary, you put forth the premise, the debt clock is the reason we should be worried and nobody else on the panel seems to be concerned? >> i will never argue the greatness of the people in this country, but when all is said and done, massive debt is hard for the economy, and it seems ton no big deal. $17 trillion, and you can can't compare the size of that now to when we went to war many years ago. nobody is doing anything about it. we have 80,000 paged in the
federal register and tax code and there is too much in front of us blocking the economy from its full potential. >> well, maybe a weakening chinese economy andle less of a buying of our debt. >> it would be good if we didn't have the welfare. >> ben, i do want to go back to you on this whole thing. you know, you put forth the idea if you are educated and so forth and this is a great country to be in, but ben, you have been around and you have seen these things, and you read the tea leaves pretty well, and should we be concerned about where we are positioned right now? >> absolutely. we are not doing as well as we should, and we will discuss that in the next segment which is the important segment. we are doing perfectly fine. a person's education saves and
worked hard and has a good family life will have a great life. >> i will second -- >> charles, i want to put my finger on something. >> go ahead. >> charlie put his finger on something and we ignored it. he said, well, we shouldn't have this massive welfare state that we have. that is the crux of the issue and that's why we have the massive debt. you could say -- you could say that's what is holding our economy back, but i am not so sure you are right, charlie. let me finish. >> we stumbled into be -- >> let adam finish real quick. >> the chinese, the japanese do, and the entire world has a entire welfare state by your definition. >> when the chinese bubble bursts, as some hedge managers are saying, who is going to buy our debt? they are a buyer of last resort. >> the federal reserve.
>> i won't defend it. >> i think your part about the welfare state is important because we are talking about a deterioration of the nation, and why we have to borrow, and to your point part of it is the giant welfare utopia. >> i have been around long enough, not as long as ben, but i remember when everybody had their pants in a knot about japan and the u.s. swapping the economy, and we had -- >> and during the '50s we were all worried that germany and france were going to overtake us. so -- >> may i remind you that -- >> china -- >> they didn't have that problem when everybody was worried about japan overtaking the united states. >> i think, again, you know, our status in the world has dropped many precipitously over the last several decades and anybody that continues to say it's no big deal i think are playing into it. >> it's a fine line beating down
our own country -- >> if your kid comes home with a c., are you afraid to say johnny get an a before hurting his feelings? >> middle class person today or in '81? >> in the '50s. >> we have more coming up, believe it or not. did you hear about the new white house plans for our roads? obviously these guys did. show me the carfax®
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for your business news. call it highway robbery, the highway pushing for more toll roads on the highways. we have heard this one before. >> it's a running joke to me. look, we were told during the stimulus that a ton of it was going to go towards shovel-ready jobs for infrastructure. we know what they were shoveling at the time. we are spending over a trillion more than a few years ago, and it's always on the taxpayer's back, and it's shadow taxes and it's adding to the nausea for the taxpayer. >> charlie, here is the thing. i drive in new york every day, and i drive across the george washington bridge and those
tolls going up and -- >> if christie has not blocked the lanes. >> sometimes they do little traffic studies that clog up the bridge. here is the thing, and i would say this, when was the last time we have not heard that we had an infrastructure crisis in the country? we have been talking about this for -- >> a very good point. >> we have been talking about this for decades. for us to believe that the federal government says we need this money, and there's buyer's row morse, we can't trust them on the subject. do we or don't we have infrastructure crisis. i don't believe it's physical -- >> we have a problem with infrastructure. let me say that i told you so. we have not raised the federal gas tax in 21 years, so if you don't want the gas tax going on, this is an alternative. it's a fee, essentially, a toll
for people who use the roads. period. >> i think there is two points here. one charlie brought up. we heard this before, and another one a lot of people scratch their heads on. what are you doing with the money you already collect? >> the fact that you have experienced as much, and there's a very good point, people are using cars and they get better miles per gallon, and the only they know i am worried about is toll booths slowing down highway traffic, and also the best point charlie ever made is they always say there is an infrastructure problem, and the democrats always, always say that. >> because there is always a problem. >> $90 billion is a nice and juicy number, and not even you would argue that money will go to what they are saying it will
go to? >> no, i argue exactly that's what the money will go to. don't worry about slowing down at the booth, ben, because this new technology called fast track technology in some states will allow people to whiz right through there. >> yeah. >> what cracks me up about this conversation is you fiscal conservatives bemoaning what the administration wants to do away with, one of the great social programs of our lives which was the interstate highway system which was paid for for everybody and everybody got to use it for free. >> did you say an army of social welfare programs. >> there are certain things you have to do. >> now, they want to add a user fee for the people who use it. there is no better form of taxation than that. threufplt has been a user fee for a long time and that fee keeps going up.
>> that has not gone up since 1993. >> gary? >> first off, there is nothing ever free that we get. we always pay for everything. the taxpayer pays for every road, every bridge. you name it. the issue for me is this. they have the money already. just earmark it. they have $3.7 trillion in the budget this year. use that money and stop coming after us. >> i want to pose a question to you. you are saying if i don't drive but i am a taxpayer, and i pay net taxes to the federal government, i should pay for the people who are using the roads then, that's what you are telling me? >> do you use the armed services? >> that's what you are telling me, if i choose not to dry and i pay federal income taxes i should pay for you to drive on the roads in florida because the amount you are paying in gas taxes is not enough --
>> that's what you just said. >> let him answer. >> the money that we pay into washington, d.c. is enough to fix every road in this country to where we do not have to have another tax. >> by the way, it's not enough. six states this year so far and d.c. have raised their gas taxes because they are not getting enough money. >> charlie, we are going to leave it there. the bottom line, and charlie was making a point, and there's a lot of things my tax go to i never benefit one nickel from. i wish i could determine where my tax dollars went. the latest push to mihike t minimum wage has been pushed back. first, more american teens are saying no to work this summer. why that could be a bummer for awful us. roger, i see you are busy,
>> this is a labor force that doesn't want to work. labor force participation has been steadily falling. it's a real serious crisis. especially in the minority community. we don't have a highly motivated or disciplined force many certain parts of the community. it's a real, super giant crisis and the fact that it's happening to young people when young people used to want to do anything to get a summer job is extremely unsettling. >> i have to tell you when i was a kid, there were lines. every kid wanted a summer job and you got your working papers and put your name in a hat and you were elated. i'm confused how they can even live without a summer job. >> look, this is a big worry if true. that is the fact that where do kids learn responsibility, accountability, how businesses run. so let's hope this is not correct. there are other things going on. i believe my sons went to internships unpaid so maybe that's going on. but it is a worry going forward.
>> i went with my son last week to the college counselor and she waved volunteering versus work. but this is a multidecade problem so it's obviously a serious problem. what the heck is going on. >> charles, it's just generational. isn't it? you talked about this so much. about people's lack of willingness to do a job they think is beneath them. >> yeah. >> that's not how we were raised. this duck tails with the first segment we did. this does worry me about the future of the country. the lack of -- a lot of people are being raised today and they think they deserve something they haven't earned. that they deserve something just because maybe they look pretty and i'm not naming any names but that's sad. >> yeah. i know kids that turn their nose up at a mcdonald's job. they got to be kidding. >> remember that skit, what did i to my summer vacation i woke up and went downtown to look for a job, hung out with my friends and smoked pot. >> i don't remember that. >> but i don't know approximate
the words are right. but i'm going to listen to it later on youtube. but when i was a kid my dad was a bar tender. he got me a job dish washing. >> sure. >> my dad was a steelworker. >> but let me tell you something, i put my hands in more goo and it was worth it. >> adam, what do you think is going on here? >> i'm troubled by this also. i know you all well enough to know that we all had jobs when we were teenagers that we looked back fondly on. it was part of becoming who we are. >> a dressing room where women tried on bathing suits. worst job ever. >> good input. my thanks. up next, think you only make money when stocks go up? our guy versus tips to make you money no matter what.
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wisdom tree dividend fund. they're an incredibly smart management company. i love them a lot. >> you guys are absolutely fantastic. the cost of freedom in the place for business, keep it right here, fox. >> one health care system for the rich and a substandard one for everybody else. that's what one prominent physician is saying is exactly what obamacare is creating in america as we speak. is is he right? welcome to forbes on fox. let's go in focus. we welcome kerry sheffield to the show for the first time. thank you for coming. >> thank you. >> rich, first to you. there's a new study out that shows that by 2020 nearly 90% of americans will be on some form of a government exchange. so we'll have 90% of americans on one and 10% essentially, the well